I remembered there was some usefull info about this on Club Lex so here it is from a gentleman who has owned 2LX's and a V-10TD Touareg:
Quote from Doc C on ClubLex
I then traded my 2000 LX for a 2004 Touareg V10 twin turbo diesel. The powertrain of that Touareg SMOKES the LX hands down. I had it for 5 months and sold it and ordered a 2005 LX. There are things like build quality and dealership experience and capability and resale value that far outweigh HP IMO. So, for those people who see things the opposite way and HP is everything, they should probably look elsewhere. The LX is underpowered, no question, but it exceeds the competition in so many other areas that HP really doesn't seem to be an issue. I have a sports car for racing. I don't need to race anyone in my SUV. Take care and happy new year.
The powertrain was incredible. The clubtouareg site has forums dedicated to "Problems/bugs" and "TSBs" that are FULL of nightmare stories of reliability. It has a great interior, but the radio controls are counterintuitive, the NAV system is worse than you can imagine. It is based on 5 CDROMs that have WAY less info than the 1 DVD based system of our LX. KEyless entry range was 3 feet. I'm not kidding. The back seat was the most uncomfortable seat I've ever seen. Anyway, I got out of it ASAP. VW has addressed a lot of the problems with later serial numbers, but why would they release a $62-65K vehicle with known issues and make the owner go in for service time after time? Oh, by the way, the dealership experience was like watching 3 monkeys hump a football. VW is not ready to sell cars in this price point. That's why the Phaeton sales are in the toilet as well.
The power of the VW was amazing. It is very quick and makes passing an easy task. It was very capable off road, but not even close to the luxury and build quality of the LX. Take care.